Silver Eagle coin sales shaping up for record in November 2010
Wednesday, December 1, 2010 at 04:52PM
Silver Prices in Silver
Silver Eagles 02 Dec 2010.JPG

The demand for silver itself, not a paper impression of a silver coin, would appear to be accelerating if this report is anything go by. Investor interest has boosted demand to record levels as the coins continue to be snapped up.

The U.S. Mint's American Eagle silver coins sales are set to rise to a record above 4 million ounces in November, as a European sovereign debt crisis and economic uncertainty prompted individual investors to bet on silver and gold as safe havens.

Total sales of the popular one-ounce silver American Eagles rose to 4.2 million coins in November, the highest monthly sales since their introduction in 1986. In October 3.2 million one-ounce Eagles were sold, the Mint's web site showed on Tuesday.

The figure does not include sales from Nov. 30 but is already well above the monthly average of about 3 million coins this year.

Year-to-date sales of the 99.9-percent pure silver Eagles totaled 33 million coins, an all-time high, surpassing the 29 million in the entire year of 2009.

"The underlying, basic reasons for the silver market's rise are really gold-oriented, but the speculative element of silver continues to be a big driver," said Bill O'Neill, partner of New Jersey-based commodities firm LOGIC Advisors.

O'Neill said that a well established retail coin-dealer network helped increase sales of the silver Eagles. He called silver a "speculative playground" and does not recommend trading it due to high volatility.

Silver, gold and platinum group metals have benefited from the fiscal crises in Greece, Ireland that could also spread to other European nations, lingering worries about economic growth and inflation concerns.

Year to date, silver was up nearly 70 percent and gold was almost 30 percent higher. On Tuesday, silver rose 4 percent to $28.20 an ounce and gold climbed over 1 percent to $1,385.

With the gold and silver markets heating up once again, King World News interviewed legendary trader Jim Sinclair.  When asked about repeated top calls being made in the gold market Sinclair responded,

“This is not what a top is made of.  I’ve been around long enough, I’ve seen many, many markets, so many I don’t even want to count anymore, and this is not what tops are made out of.  Tops are made out of outrageous exuberance.”

Sinclair continues:

“What most people look at, no what almost everyone looks at is a picture in time, something like looking at a still.  Up comes the chart, it’s a picture in time.  Very few people will focus on motion, direction over time.  And you can’t predict the future unless you can see things in motion.  So, to the static thinker the picture in time has to have an excuse of why the market did this or why the market did that or what technical thing happened to make it happen.  While in truth, you and I know we are watching something unfold.”

With gold and silver continuing to digest recent gains, King World News interviewed Geoff Burns, CEO of Pan American Silver.   When asked if he had heard about tightness in the silver market Geoff stated, 

“Anecdotally Eric, I mean when you talk to some of the fellows who actually trade the physical, they can relate stories where they are actually having trouble getting their hands on quantity.  Particularly for some of the end users who are looking for real product, not the investment guys, but the actual elctronics manufacturers, etc. who need physical silver in order to make their products.”

So there we have it, industrial users are having trouble obtaining silver in the quantities that they need to continue manufacturing. Also remember that the silver components of electrical goods is a minor consideration compared to the cost of the item, so higher silver prices only have a minor effect on the pricing of the goods. Also, investment demand is accelerating taking more silver off the market.

We have all waited very patiently for this bull market to unfold and in our very humble opinion we are now at the starting gate. Don't be too picky about the price that you have to pay to acquire some physical silver, plan to layer in and buy when you are due to buy, thus accumulating your stash over time in a steady and consistent manner.

Meanwhile back at the ranch during our knockabout sessions we have toyed with the idea of running an Accumulator whereby we make a trade and then use the total proceeds for the next trade and so on. So the stake and any profits are rolled into the next move, if you would like to comment on this idea, then please click here.

Over in the options trading pit the team have updated the progress chart to include closed trades, now 53 winners and out of 55 trades, having been stopped out of a trade with a profit of 41.84% made in just 8 days. We currently have a number of open positions which we are pleased to say are all in positive territory.

sk chart 19 Nov 2010.JPG

The above progress chart is being updated constantly. However, to see exactly how it is going, please click this link.

So, the question is: Are you going to make the decision to join us today?

Stay on your toes and have a good one.

Got a comment then please add it to this article, all opinions are welcome and very much appreciated by both our readership and the team here.

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